Littler Global Guide - Central America - Q1 2017

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q1 2017 Global Guide Quarterly updates

Costa Rica: Social Security Administration to Raise Contribution Percentages to Employees

New Order or Decree

Effective June 1, 2017, the Board of Directors of the Social Security Administration (Caja Costarricense del Seguro Social, "CCSS") Caja Costarricense del Seguro SocialCaja Costarricense del Seguro Socialincreased the contribution percentages that employees make on their monthly wages by 1%, bringing the total monthly contribution by every employee to 10.34%. Employers are advised to monitor this development, since it would impact the amount of salary that is withheld and transferred to the CCSS monthly, and would also change the calculations for wage garnishments and alimony payments.

El Salvador: Increase in the Minimum Wage

New Order or Decree

As of January 1, 2017, the government raised minimum wage for all workers across the country. For service or industry type of jobs, the increase is about 20% and for certain agricultural jobs, the increase is as high as 100%. More than 235,000 workers will benefit from the increase.

Guatemala: Congressional Amendment to Labor Code Enhances Powers of Ministry of Labor

Enacted Legislation

Author: Marco Antonio Cruz, Managing Partner — BDS Asesores

On March 16, 2017, the National Congress of Guatemala (Congreso de la República de Guatemala) passed Bill No. 5198, now Decree No. 7-2017, which reforms the Guatemalan Code of Labor and grants the National Inspection of the Ministry of Labor the power to directly impose sanctions on employers who violate employment legislation. The fines range between 5 and 18 minimum wages for violations related to salary payment and other employment benefits, and between 2 and 10 for violation of collective rights, as well as other violations of current regulations. Decree 7-1987 must be signed by the President and published in the official newspaper before it becomes effective.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.